Granted, just that feature was 6 times the volume of a modern webcam and probably three times the cost, but it did perfectly address people's discomfort with the eye staring at them.
For some reason, the ear listening to them doesn't seem to evoke the same reaction. I don't know anyone that tries to deafen their microphone.
Regarding webcam, led is OK, but it shouldn't be driven by some firmware, it should be a simple circuit - when there is a voltage on the camera Vdd, the led is on. I don't know how it is with the newest macbooks and if the led is still hackable.